Steward Medical sold to Rural Healthcare Group 

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Steward Medical Group and Steward Health Care Network have been sold to Rural Healthcare Group and have been rebranded as Revere Medical.

The Massachusetts Health Policy Commission last month said it concluded review of the sale of Steward Health Care's physician network, Stewardship Health. Stewardship Health employs and contracts with insurers on behalf of primary care physicians and other clinicians across nine states, to Brady Health Buyer, an affiliate of Rural Healthcare Group and subsidiary of Kinderhook Industries, a private investment firm, HPC said.

The HPC plans to closely monitor RHG's operation of Stewardship going forward.

The sale was approved by Judge Christopher Lopez on August 22 in the federal court overseeing the bankruptcy of Steward Health Care.

WHY THIS MATTERS

Rural Healthcare Group is buying the medical group Optum once planned to acquire.

Revere Medical said it plans to make investments in Steward's people and technology.

The transaction presents uncertainties, the HPC said. RHG is a young organization and a new private-equity backed entrant to the Massachusetts market. However, the HPC found that the immediate sale to RHG would allow Stewardship providers to continue to provide care for their patients, providing stability for patients, staff and the healthcare market at large.

Further, the HPC said, RHG has committed to continuing its participation in MassHealth, maintaining continuity of care for these patients.

RHG has committed to providing regular updates to the HPC on its operations in Massachusetts over the next two years, including on personnel changes, changes to services, patients served and significant financial activities that could impact operations in Massachusetts.

THE LARGER TREND

Optum backed out of its agreement to purchase Steward Health Care's physician group, Stewardship Health, in June.

Optum's purchase of the Steward physician group was one step in a bankruptcy restructuring process to sell the 31 hospitals in the troubled health system.

Four Steward hospitals in Massachusetts have been sold.

ON THE RECORD

"This is an exciting time for both Stewardship and RHG, now known as Revere Medical. Combining the organizations will allow for Revere Medical to accelerate the impact of our operating model across more providers, patients, and communities," said Benson Sloan, CEO of Revere Medical. "The next step is to integrate the two organizations while making further investments to bolster the delivery of care. As Revere Medical, our mission of improving the lives of people in underserved areas through high-quality care remains unchanged."

Email the writer: SMorse@himss.org